Bunge Limited (NYSE: BG) is
an integrated agribusiness, fertilizer and food products concern. The company is a leading global processor of soybeans and other grains, a leading provider of products and services to the South American farming community and a major U.S. food processor. Some of Bunge's agribusiness products are used for industrial purposes, including renewable fuels like biodiesel. Archer-Daniels-Midland (NYSE: ADM) is a major competitor.
Investors were pleased earlier in the month, when Bunge-DuPont (NYSE: DD) joint venture Solae Company said it would increase global prices for its soy protein ingredients by up to 30%. The firm said the increases were necessary, in order to maintain a consistent level of service, innovation and investment in research.
BG shares
popped on the news and have since been consolidating the gain in a bullish "flag" pattern. Equities frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the stock with six "buys" and three "holds". Analysts see a 17% growth rate, through the next year. The BG P/E ratio (17.99), Price to Sales ratio (0.32), Price to Book ratio (1.92), Price to Cash Flow ratio (9.93), Sales Growth rate (82.45%) and Revenue per Employee ($1.584M) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 72% of the outstanding shares. Over the past 52 weeks, the stock has traded between $70.97 and $135.00. A stop-loss of $89.50 looks good here. Note that the firm is expected to release first quarter results on April 24th, before the open.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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